The University of Minnesota’s Carlson School of Management has opened a new research program aimed at finding business solutions to persistent problems facing the U.S. health care system.
The Business Advancement Center for Health (BACH) sprang from existing Carlson School research into the health sector, including the school's Covid-19 Hospitalization Tracking Project, which followed daily hospitalization data from all 50 states. That led to research into racial disparities regarding Covid-19 care and the impact of public-health policies like stay-at-home orders on hospitals and communities.
Pinar Karaca Mandic, a Carlson School professor and BACH’s founding director, said the center will continue to explore those types of issues. But it will also examine more fundamental shortcomings of health care in the United States.
“Think about payment incentives," she said. "A lot of our payment models are based on fee-for-service, which creates different incentives for providers, and that doesn’t necessarily work. “
However, alternatives like value-based incentive systems — sort of a "pay for performance" model — can hurt providers caring for patients with tough-to-treat ailments, she added.
One potential remedy, currently being studied in a three-year project by BACH, include the creation of financial tools called "social bonds." Under that model, health providers and other organizations invest in a fund that then bankrolls community-based efforts to combat social issues that can worsen health disparities.
The center will rely on collaboration between the Carlson School and the Minnesota Hospital Association, with support from the Minnesota Department of Human Services, Minnesota Department of Health, Minnesota Council of Health Plans, Piper Sandler, PrimeWest Health, Amherst H. Wilder Foundation, Second Harvest Heartland, and StratisHealth.
BACH will also be the home to events such as the University of Minnesota’s Interdisciplinary Health Data Competition, which challenges students to address healthcare challenges. In April, the center will host a virtual conference, called Convene, that will focus on issues facing the healthcare consumer in the digital era. Aneesh Chopra, president of CareJourney and former U.S. chief technology officer for President Barack Obama, will be the keynote speaker.
"We'll see where it takes us, the hope is that new collaborations will arise and new relationships will arise," Karaca-Mandic said.
